Monday, December 7, 2015

To break the GST logjam, FM meets Anand Sharma

by Harish Gupta, National Editor, Lokmat

EXCLUSIVE

Harish Gupta

New Delhi, Dec 6 :
The Central government established its first contact with the Congress for the smooth passage of the long pending GST Bill when Union finance minister Arun Jaitley met the deputy leader of the Congress party in the Rajya Sabha  Anand Sharma. The meeting lasted for nearly an hour on Saturday and Jaitley took time out in between the marriage ceremony functions of his daughter.

This was the first meeting between the BJP and the Congress leaders after the Chief Economic Advisor Arvind  Subramaniam"s report was submitted on Friday signalling a forward movement on the GST Bill. While the Subramaniam Committee has already met one of the crucial demands of the Congress and dropped the 1% inter-state tax for the benefit of manufacturing states, no solution could be found on the ticklish issue of mentioning of standard tax rate in the Constitution Amendment Bill. Another issue that cropped up during the Jaitley-Sharma meeting was exclusion of alcohol, real estate, electricity and petroleum from the GST regime. The Congress wants them to be included at the outset of the GST regime.

But the Subramaniam panel has suggested that these can be brought under the GST within 3-5 years time-frame. The GST regime can be strengthened gradually rather than going whole hog and implement the same in one go on April 1, 2016. The final draft of the GST Bill will be presented to the Rajya Sabha only after these discussions are taken to a logical conclusion. While Anand Sharma will brief his senior party leaders of the proposals made by the government, Jaitley will have to work hard to bring states on board. The GST Bill may have been listed for the week beginning Monday in the Rajya Sabha but it will take some shape only on Thursday and the final decision on the Bill only in the third week of December. Besides, both sides agreed that steps be taken to ensure creating a congenial atmosphere in Parliament and way out be found on the Gen. V K Singh issue. The Congress has already decided not to allow minister of state for external affairs Gen. V K Singh to speak in Parliament.